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IRR Calculator

Calculate the internal rate of return for a series of cash flows.

⚡ Instant results🔒 Private — runs locally🆓 Free forever🚫 No signup

IRR Calculator

Calculate the internal rate of return for a series of cash flows.

⚡ Instant🔒 Private🆓 Free🚫 No signupFinancially accurate
$
%
years
$
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Compound Growth Formula

A = P(1 + r/12)^(12t) + PMT × [(1 + r/12)^(12t) – 1] / (r/12)
A = Future value
P = Principal (initial investment)
r = Annual return rate (decimal)
t = Time in years
PMT = Monthly contribution

ℹ️ Assumes monthly compounding. Past returns do not guarantee future results.

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Disclaimer

Results provided by this calculator are for informational and educational purposes only. They are based on the values you enter and standard formulas, and should not be considered financial, medical, legal, or professional advice. Always consult a qualified professional before making important decisions based on these results. Roughtools makes no warranties regarding the accuracy or completeness of these calculations for your specific situation.

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Frequently Asked Questions

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Pro Tips

1

Time in the market beats timing the market. Missing just the 10 best trading days over 20 years can cut your returns in half. Stay invested through downturns.

2

Tax-advantaged accounts (401k, Roth IRA) let your investments grow tax-free or tax-deferred — always max these before investing in taxable accounts.

3

The Rule of 72: divide 72 by your annual return to estimate years to double. At 7%, money doubles every ~10.3 years. At 10%, every 7.2 years.

4

Increase your contribution by just 1% of salary each year you get a raise. You won't notice the difference in take-home pay, but it compounds dramatically over decades.

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When to Use This Calculator

🌱Starting to invest

See how even small monthly contributions grow dramatically over time with compound returns — motivation to start immediately.

🎓Education fund planning

Calculate how much to save monthly to reach a college fund target in 10–18 years at a realistic return rate.

🏖️Retirement planning

Project your portfolio balance at retirement based on current savings rate and expected returns.

💰Lump sum vs regular investment

Compare the outcome of investing a windfall now versus spreading it as monthly contributions over time.

📊Return rate comparison

Compare outcomes at different return rates (5%, 7%, 9%) to understand the impact of investment choice on final balance.

About the IRR Calculator

This IRR calculator computes the internal rate of return for any series of cash flows — the discount rate at which the net present value (NPV) of all flows equals zero. Enter your initial investment and projected cash flows by period to find the IRR and compare it against your required hurdle rate. Essential for capital budgeting, real estate investment analysis, private equity, and any project where timing of cash flows matters.

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How to Use the IRR Calculator

  1. 1

    Enter the initial investment as a negative number (cash outflow at period 0).

  2. 2

    Enter projected cash inflows for each subsequent period (year 1, 2, 3, etc.).

  3. 3

    Enter your required return rate (hurdle rate) for comparison.

  4. 4

    See the calculated IRR and whether it exceeds your hurdle rate.

  5. 5

    A positive NPV at your hurdle rate and IRR above hurdle rate both indicate a worthwhile investment.

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